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Global Crossing

It has been anticipated that Global Crossing is going to be viewing bankruptcy sooner as there are many other Far East companies in the same list.In the list of global crossing bankruptcy issues, it has been speculated that J.P.

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Morgan Chase was one of the lead and most important banks in case of Global’s borrowings. Global has been known to spend at least US$ million and the investment has been made on the fiber optic cable network. In the case of the banks that have been mentioned that great investments have been made and no savings have been made (Pederson, 2008, p. 67).

There have been many banks lured into investments made by Global’s investments but one of the main banks that are under focus include J. P. Morgan Chase bank as Global has been facing many misfortunes lately. Enron is another company that has recently faced bankruptcy along with Kmart and J. P. Morgan Chase has been heavily involved in these two companies. It has been recently reported that one of the biggest issues that a couple of years ago, some risky best were placed on dot. con bubble and as a result of the resultant losses, the only way that Chase could survive was a merger with J. P. Morgan (Mackay, 2004, p. 78).

After this, it has been seen, that J. P. Morgan Chase has been heavily involved in banking situations and dealing in countries as Argentina. Along with these, there are a couple of corporate failures faced by J. P. Morgan Chase. Thereby as anticipated, these can lead to great problems and troubles in the future. Thereby it is being anticipated that J. P. Morgan Chase can fail but it is argued that this banking company is too big and on a greater scale for Washington to fail.

One of the similar banks in US that have faced failure is PNC that has failed as a result of a set of hidden set of deficits. However, analysts say that PNC is less important to the banking system as compared to J. P. Morgan Chase. Thereby it has been argued that if J. P. Morgan Chase faces failures than US government will plan to preserve it as recently shares of J. P. Morgan Chase were selling at 33$ and the original price was 40$ and the prices gad decreased as a result of terror attacks in US. Merrill Lynch reduced some of the forecasts about J.

P. Morgan Chase as it has been argued that the expenses are higher than anticipated in case of J. P. Morgan Chase (Vault (Firm), 2001). But the main concern that has been worrying some accountants and analysts is that there are some banks including PNC that have not been able to report their banking activities in an accurate manner and this has also been the case with J. P. Morgan Chase (Pontifell, 2004, p. 67). Recommendation Analysts have argued that in order to correct the conditions that are now being faced by J. P.

Morgan Chase, there is a need to report the banking activities in an accurate manner along with an increase in investments in companies that are thought to be less risky. Moreover, it has been argued that aggressive leveraging and aggressive and accurate accounting can help J. P. Morgan Chase get back on their feet along with an additional support that can be gathered from the governments. J. P. Morgan Chase is a bank and there are two main responsibilities that are to be served by the bank. Serving the community that includes the customers and shareholders.

An important responsibility that has to be considered by J. P. Morgan Chase in case of consumers is giving them better banking that can increase investments and business. on the other hand, there are important responsibilities for shareholders that is to give them sharers of profits earned. Conclusion Business means investments and these investments are linked with profits and losses that are to be shared with investors in businesses, the shareholders. These investments are collected from the community and customers in order to give them the best of profits and losses.

References Mackay, H. (2004). We got fired! — and it’s the best thing that ever happened to us. Ballantine Books. Pederson, P. J. (2008). International Directory of Company Histories, Volume 91; International Directory of Company Histories, Thomas Derdak; Gale virtual reference library. St. James Press. Pontifell, S. M. G. S. (2004). From J. P. Morgan ; Co. to J. P. Morgan Chase: a contribution to the history of U. S. banking. Zurich. Vault (Firm). (2001). J. P. Morgan Chase; Vault employer profile. Vault, Inc.